Sterling traded flat on Thursday after Prime Minister Theresa May failed to secure a blueprint for Britain's future ties with the European Union at a meeting with the head of the bloc's executive.
May will return to Brussels on Saturday to try and agree an outline for Britain’s withdrawal from the EU. All EU leaders are due to meet on Sunday to approve the deal.
Just over four months before Britain's departure from the EU, Brexit negotiations and political uncertainty in Britain remain the key drivers for the pound, and many analysts are cautious about its prospects.
The pound was up 0.1 percent to $1.2784 at 0900 GMT but down 0.1 percent against the euro to 89.19 pence
Growing opposition to May's draft arrangement has hit sterling hard in recent weeks, pulling it down nearly 3 percent from a Nov. 7 high of $1.3176.
Source : Reuters